Brent crude oil rose by 4.19 percent on Tuesday, July 13 to $86.79 per barrel, its highest level since June 12.
The United State (US) benchmark, West Texas Intermediate (WTI), also climbed 3.16 percent to $80.61 per barrel.
The price surge followed renewed geopolitical tensions in the Middle East after the US reimposed a naval blockade on Iran.
Fresh exchanges between Washington and Tehran also heightened concerns over potential disruptions to energy supplies through the Strait of Hormuz, one of the world’s most critical oil shipping routes.
On July 12, Iran announced the closure of the Strait of Hormuz after claiming its forces fired a naval cruise missile at a vessel it accused of using an unauthorised route.
A month earlier, global crude oil prices had fallen to about $82 per barrel after the U S, Israel and Iran reached an agreement to end hostilities across the Middle East, including in Lebanon, leading to the reopening of the strategic waterway.
Following the decline in crude prices, the Federal Competition and Consumer Protection Commission(FCCPC) accused oil marketers of failing to pass on the benefits of lower global oil prices to consumers. The commission argued that the reductions in pump prices did not reflect the significant drop in international crude prices.
A day later, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the federal government was engaging oil marketers and regulators to ensure that declines in global crude oil prices are reflected more transparently in domestic pump prices.
On July 10, the federal government also convened a meeting with oil and gas stakeholders to discuss fair pricing of petroleum products across the country.
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